Gross 2 salary, often known as "Total employer cost", represents the actual financial amount your company must allocate to employ you and pay your salary.
Gross 2 is a broader and larger amount than Gross 1. Mathematically speaking, it consists of:
When you ask for a net raise of 100 KM, the cost of that raise for the employer is not 100 KM. Due to the necessary payments for pension, health, and taxes to the state, that raise costs the employer significantly more (often up to 180 KM).
Therefore, when you negotiate a new salary, the employer calculates Gross 2 in mind to assess whether you are a profitable investment for them.